The IRS says it has finished mailing out stimulus payouts, but depending on your 2021 taxes, you may be eligible for extra money.
The IRS distributed more than 175 million Economic Impact Payments as part of the American Rescue Plan to assist individuals in coping with the pandemic’s impacts. The law granted the IRS until December 31, 2021, to disperse the funds, which amounted to COVID-19’s third (and possibly last) stimulus check.
The IRS said last week that the procedure had been completed. Some cheques “may still be in the mail,” but “the IRS is no longer issuing payments as required by law,” according to a statement.
Don’t panic if you haven’t received your third stimulus check or believe you are entitled to extra money. The third-round Economic Impact Payment was an early payment of the 2021 Recovery Rebate Credit, allowing you to recuperate lost money by filing a tax return and claiming the credit. This is particularly significant since the IRS calculated stimulus payouts using tax data from your 2020 return or earlier, and additional money may be available if your circumstances have changed since then.
Have you started filing your 2021 Taxes?
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Today is the last day to file your taxes for the year 2021!
Finally, the amount of your Recovery Rebate Credit on your 2021 taxes is determined by your income and the number of qualified dependents. If your income has decreased since your 2020 tax return and/or you added a new dependant to your family in 2021, you may be eligible for more stimulus money when you submit your taxes this year.
The Recovery Rebate Credit may be used in the following situations:
- You may be entitled to a $1,400 credit if you earned more than $80,000 (or $160,000 for joint filers) in 2020 but less than that amount in 2021. Similarly, if you earned between $75,000 and $80,000 in 2020 (or $150,000 and $160,000 jointly) but less in 2021, you may be eligible for a partial credit comparable to “plus-up payments” in the form of a tax credit.
- If you have a new kid or dependant in 2021 and list your child as a dependent on your 2021 tax return, you may be entitled to a credit of up to $1,400, according to the IRS. Similarly, if you’ve added another dependant — such as a grandchild, parent, or another qualified relative — you may be eligible for a credit of up to $1,400 per person.
According to the IRS, the credit will either lower your tax payment or be applied to your refund, and it will not be delivered as a separate check.
If you haven’t already filed your 2021 taxes, it’s to your best advantage to do so as soon as possible.
To expedite your payment, use TurboTax to complete your tax forms and include your direct deposit information.
Additionally, the IRS is urging new parents to claim the child tax credit on their 2021 tax returns in order to get a credit of up to $3,600 per kid (birth, adoption, or foster care).
Due to the long holiday weekend, tax season began on January 24 and will finish on April 18 in most states. In most circumstances, it’s best to file as soon as possible in order to get a prompt refund. If you believe you are still due stimulus funds, make sure you have all of the necessary information regarding any prior stimulus payments before submitting them.
The IRS will give you the information you need in the mail, in the form of Letter 6475. If you didn’t get the letter or threw it away, you may check the specifics of your stimulus payment on your IRS online account under the “Tax Records” section.
Returns that are incomplete or erroneous will simply slow down the process. Fortunately, according to the IRS, there are two crucial things you can do to expedite the process.
“Filing online and selecting direct deposit is the quickest and most secure option for eligible taxpayers to collect their 2021 tax return that will include their authorized 2021 Recovery Rebate Credit,” the IRS adds.
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